A distribution of property from your IRA is still a reportable distribution for the year in which the distribution takes place. Without a value, how can you know what your RMD amount needs to be or whether or not you've satisfied your RMD for this IRA?
Your tax liability is based on whatever is reported in box 1 of the Form 1099-R for a distribution from an IRA. A Form 1099-R is required unless the amount that would otherwise be reported in box 1 of the Form 1099-R is less than $10. The income is reportable on the tax return for the year in which the distribution occurs.
